bankruptcy & taxes....

[mickeysfriend]

my tax guy said that next year my bk will affect my taxes, but couldnt tell me how. said each case is different. he said something about what forms I receive.

What is he talking about? Do you get 1099 from companies you filed on? Is a BK looked at as income?????

[JoeBankrupt33]

You shouldn't get any 1099-C forms from creditors included in your bankruptcy, but I have heard of some sending it anyway, specifically Capital One.

If you do get the 1099-C, then you need to fill out form 982 and mark the box that says you were discharged under a title 11 case. Don't put the cancelled debt on 1040 line 21, which is where a cancelled debt would normally go if you were not in bankruptcy.